bclemms
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Houses are getting cheaper by the month. Everything else is becoming more expensive.
Home Prices Across the Nation
Back Story With The Times’s Vikas Bajaj (mp3)Several economic reports released on Tuesday provided fresh evidence that the economic pain of a prolonged slump in housing is being compounded by the rising cost of oil, food, clothes and other goods. Not surprisingly, a measure of consumer confidence fell to its lowest level in nearly five years.
In addition to squeezing American homeowners, the confluence of falling home prices and accelerating inflation is putting policy makers in an increasingly tough position. If they move aggressively to cut interest rates and stimulate the economy, they risk fueling inflation further at a time consumers are already strained. But if they fail to act boldly, the economy could weaken faster.
“The Fed is now having to walk a very fine line,” said Jane Caron, chief economic strategist at Dwight Asset Management, an investment firm that specializes in bonds. “We have clearly seen an acceleration in inflation pressure in the last couple of months and the risk is that the markets are going to react negatively to aggressive easing going forward.”
http://www.nytimes.com/2008/02/27/business/27econ.html?ref=business
Home Prices Across the Nation
Back Story With The Times’s Vikas Bajaj (mp3)Several economic reports released on Tuesday provided fresh evidence that the economic pain of a prolonged slump in housing is being compounded by the rising cost of oil, food, clothes and other goods. Not surprisingly, a measure of consumer confidence fell to its lowest level in nearly five years.
In addition to squeezing American homeowners, the confluence of falling home prices and accelerating inflation is putting policy makers in an increasingly tough position. If they move aggressively to cut interest rates and stimulate the economy, they risk fueling inflation further at a time consumers are already strained. But if they fail to act boldly, the economy could weaken faster.
“The Fed is now having to walk a very fine line,” said Jane Caron, chief economic strategist at Dwight Asset Management, an investment firm that specializes in bonds. “We have clearly seen an acceleration in inflation pressure in the last couple of months and the risk is that the markets are going to react negatively to aggressive easing going forward.”
http://www.nytimes.com/2008/02/27/business/27econ.html?ref=business